NEW HOME SALES OPTIMISM NOT REACHING BUYERS YET

INCREASING OPTIMISM ON NEW HOME SALES HAS YET TO HIT HOMEBUYERS IN LAS VEGAS

New home sales totaled just 216 in January down from 237 in January of 2011 and the lowest level on record
reported Home Builders Research on Monday.

New home building permits in Las Vegas fell to 222 in January, 10 fewer than a year ago and 158 fewer
than two years ago.

A spokesman said, "what's holding back the new home market is excess inventory in the resale segment."
With an estimated 200,000 homes Las Vegas "under water," builders are reluctant to resume building because
many of the existing homes could go into foreclosure and swamp the market.

Consumers also might not be able to afford move-in costs associated with buying a new home, including
higher down payments and mortgage insurance premiums for those with damaged credit scores.

Another factor is the insecure job market. We are creating jobs in the hospitality sector, but not jobs
that instantly improve consumer demand for housing.

More people are expressing interest in buying a new home, but they are having trouble in qualifying for
financing.

The new home median price is holding steady in Las Vegas, slipping less than 1% from a year ago, at
$207,000.

4,434 existing home sales were reported in January at a median price of $100,000, an 8.3 percent decrease
from a year ago and the lowest price since the 1990s.

A spokesman said, "it could go up next month, but I've got to tell you, I don't see anything acting as a
catalyst for change, especially the junky-funky, hokey-pokey $25 billion settlement with the banks."

That settlement doesn't affect homes financed by Fannie Mae, Freddie Mac and the Federal Housing
Authority which is about 60 percent of the Las Vegas market.

"The banks almost choke when they say the words "principal reduction". The robo-signing is the latest -
and potentially the largest piece in the U.S. housing puzzle."

Another spokesman said, "the settlement might be a step in the right direction, at least to make banks abide
by the rules." Although banks are expected to release more foreclosures later this year, it will probably be
at a pace that will not overwhelm the market.

The gap between new and existing home prices wil stay around $100,000 as foreclosures and short sales
continue to apply downward pricing pressure.

"What new builders continue to offer is flexibility and the opportunity to purchase NOW and move
your family here when you want."

IS THE BOTTOM IN FOR THE LAS VEGAS HOUSING MARKET?

LAS VEGAS HOUSING MARKET -- THE BOTTOM IN SIGHT YET?

Las Vegas home values drop for second straight year, losing 11 percent of value on average.

Home values dropped in all but 3 of the valley's 56 zip codes last year. That's coming off a 6 percent decline
in 2010, compared with the 23 percent decrease in 2009.

Overall, Las Vegas home prices have fallen more than 50 percent from their peak and have yet to find the
proverbial bottom. They could easily go down another 10 percent, which means a slip below $100,000.

A spokesman said, " I'm curious to see what the $25 billion settlement accomplishes. " The banks are saying,
"we'll give you the $25 billion just to see this go away."

"Another appraiser says, "there are good buys and bad buys in every zip code. Las Vegas is composed of some
100 sub-markets that are pretty erratic when it comes to home valuation. Depreciation depends on the amount
of distressed inventory in the neighborhood."

One zip code that showed appreciation last year was 89146, around Sahara and Jones Blvd., a mature
neighborhood with 20-30 year old homes on half-acrelots. The median price rose 5.3 percent in 2011.

Master planned communities like Mountain's Edge and Providence, home prices fell 8 and 5.6 respectively.
That's where the bulk of new homes built in the last few years of the boom took place and where there are lots
of foreclosures.

About half of the buyers in Las Vegas are investors. If banks continue to tighten the spigot on foreclosures,
investors won't be able to pick up bargains and they might stop buying.

The entire market is not in decline as some appraisals
are coming in at list price and higher in some areas.

One broker said he has people across the country buying second homes. "This is the deal of the century."

Some real estate experts point to artificially depressed appraisals for contributing to Las Vegas declining home
prices.

NEVADA FORECLOSURE STARTS INCREASING

NEVADA FORECLOSURE STARTS INCREASING BUT STILL BELOW THE NUMBERS FROM A YEAR AGO

In Clark County, there were 1,115 notices of default,filed in January, up 13.5 percent from the prior month,but a dramatic 80% decrease from 5,695 in January 2011, an online service reported.

A total of 1,345 homes went back to bank in January, a 44.6 percent increase from the previous month and a 40.4 percent decrease from the same month a year ago.

Nevada still posted the nation's highest foreclosure rate for the 61st month in a row.

Most economists associate high foreclosure rates with high unemployment, but that is not the case in Nevada, said a spokesman for the online service.

"Clearly, unemployment is not helping the foreclosure crisis, which is about prices that were unsustainable.I think the banks just don't want to admit that stupid lending practices are the primary driver of foreclosures. We will be clearing that mess up whether unemploymentis or low."

The decline in new foreclosures is the result of a recent Nevada law to force lenders to prove ownership.

With a foreclosure time frame of more than 8 months,there is little chance of a predicted wave of foreclosures
this year.

Another online service disagrees -- "the 25 billion dollar settlement just enacted will accelerate the foreclosures this year, and it will accelerate the process of lenders catching up on the backlog of foreclosures."

"We project that foreclosures will rise 25 percent this year to one million homes. Last year, lenders took back 804,000 homes."

Real-estate owned or bank-owned, inventory has decreased 50% from a year ago. That is bringing multiple offers on foreclosures priced under $250,000.

All told, 210,941 U.S. homes received a default notice, were scheduled for auction, or were repossessed by a lender in January. The foreclosure rate translates to one in every 624 U.S. households.

A credit rating agency also anticipates foreclosures will rise nationally this year but not right away, as it will take some time for lenders to make sure they are complying with the rules of the settlement.

Las Vegas New Home Builders Feeling Optimistic About 2012

HOME BUILDERS OPTIMISTIC ABOUT RISING NEW HOME SALES IN 2012

The National Association of Home Builders/Wells Fargo said its Builder Sentiment index rose for a fifth straight month in February to 29, up from 25 in January, to its highest level since May 2007.

Builders have generally become more hopeful about current sales six months out, and foot traffic, the report shows.

Even with the brighter outlook, the industry has a long way to go. Any reading below 50 shows a negative sentiment about the housing market.

The index hasn't reached 50 since April 2006, the peak of the housing boom. A key reason home builders are more optimistic is that they are seeing
more people express interest in buying a home.

Sales of previously occupied homes rose in December for a third straight month. Mortgage rates have never been lower. However, home prices continue to fall, and
builders continue to slash prices to stay competitive.

Last year was the worst for new home sales since 1963. Las Vegas based Home Builders Research reported 3,894 new home sales in 2011, down from 39,000 in
2005 and 23,000 in 2001.

New homes make up a small portion of housing sales.Builders are struggling to compete with foreclosures which have forced down prices of previously occupied
homes. And many people are finding it harder to qualify for loans or meet higher down payments.

Low appraisals are scuttling some deals after contracts have been signed. One appraiser said, "one thing we know about Vegas, is that values are declining. The
key to our recovery is getting rid of our inventory."

"Let all those foreclosures work through the system.
Availability of credit is another big deal."

Those who are in a position to buy new homes are benefiting from lower prices and low interest rates. The average rate on a 30 year fixed mortgage is at
record lows of below 4 percent. Yet, these factors have done little to boost sales.

Over half of homeowners in Southern Nevada are underwater and are stuck in their homes unless they try a short sales or default on their mortgage.

Las Vegas Commercial Office Market Looking To Own

THE OFFICE MARKET IN LAS VEGAS NOW IN AN OWNING RATHER THAN A RENTING MODE

Small business owners such as Clay Bloxham, of PayPros payroll accounting service recently bought
a freestanding, 4,100 square foot office condo at Durango Drive for $390,000, working out terms with
Bank of Nevada, the property's previous owner.

Bloxham figures to save about 55 percent from what he was paying in rent in similar-size office rent locally.
Bloxham looked at 6 different properties to make an easier commute for him and his 8 employees.

Even with office vacancies in Las Vegas at 25 percent and asking rents falling under $2 a square foot, it makes better financial sense for some small businesses to follow Bloxham's lead.

With prices and interest rates low, an owner can control costs and gain tax breaks from depreciation.

A local Realtor said he is selling offices of 10,000 square feet or less for about $80 a foot in the southwest Las Vegas area, while improved buildings, not just shells, are going for $125 a square foot.

Going forward, there will be more bank owned properties coming on the market says a research analyst in Las Vegas.

While banks continue to work with owner-users of smaller mostly vacant office buildings, special servicers are trying to unload larger income-producing properties to the right investor.

Another Realtor said the benefits of renting rather than buying offices are much the same as in residential real estate, because the full amount of expenses can be deducted from taxable income.

Bloxham of PayPros estimates he will spend about $15,000 on new paint and carpets for his office. "We
looked at Small Business Administration financing but the bank's terms made more sense."

The Las Vegas Convention and Visitors Authority Gains $27 Million

$27 MILLION WINDFALL FOR THE LAS VEGAS CONVENTION AND VISITORS AUTHORITY

With the economy showing signs of life and the tourist volume rising to near pre-recession levels,the Convention Authority will have to adjust its budget to account for a windfall.

The Authority is financed by a 12 to 13 percent tax on every one of the 150,000 rooms in the Las Vegas area.
Thus, increases in tourism and room rates means more money - a projected $27 million in the travel-board's
pockets.

Year-to-date, room tax earnings average for the Las Vegas area are up 19.8 percent over last year. The average daily
rate, $105 is 10.7 percent higher than last year.

Of the expected $27 million windfall, $18.8 million will be divided several ways, $2.7 million for community support,
$1 million marketing, $5 million advertising, $10 million transfer to capital, and the remaining $8.2 million will be
saved.

The Authority's total budget will go from $188 million to $197 million due to the windfall.

The tax collection allocation for the 2nd quarter 2012 will be paid to Clark County, city of Las Vegas, city of
North Las Vegas, city of Henderson, Boulder City and Mesquite.

Also, the Board of Directors approved a $2.7 million carpet purchase for the Center's public areas, lobbies and meeting rooms.

LAS VEGAS NOT BENEFITING FROM BANKS CASH OFFERS

NUMBERS IN LAS VEGAS DON'T SUPPORT THE BANKS EFFORTS OF OFFERING CASH PAYMENTS FOR SHORT SALES IN OTHER STATES

Local LAS VEGAS REALTORs ASKS --
"Why is it that 48 percent of home sales are foreclosures and only 26 percent are short sales? "

"It's funny that they put this out there when hundreds of thousands of homeowners who want to short sell
get refused? " It's more PR than anything. If lenders really want to move mortgages off the books they would
approve short sales for the 10,000 homeowners in Las Vegas that are in short-sale limbo and will short-sell
for free - no $35,000 needed."

A mountain of pending repossessions is holding back housing recovery, where prices have fallen for six
straight years damping economic growth. Owners of more than 14 million homes are in foreclosure,
behind in their mortgage payments or owe more than their properties are worth.

Short sales represented 9 percent of all U.S. residential. transactions in November. Bank owned foreclosures
and short sales sold at a discount of 34 percent.

Lenders are finding out that some borrowers would rather risk repossession while living rent free for
years before they are forced out.

While Morgan-Chase is offering the largest incentive payments, other banks are also offering them, according
to interviews with 12 real estate agents in other states.

Morgan-Chase, the biggest U.S. bank, approves about 5,000 short sales a month. It generally offers about
$10,000 to $35,000 in cash payment at settlement. Not all of the sales include incentives.

For banks, a short sale could cut a year or more of the time it takes to unload a property. From listing to sale,
the transaction took about 123 days on average. Lenders spend an average of 348 days to foreclose and another
175 days to sell the property.

Wells-Fargo offers relocation assistance of as much as $20,000 to borrowers who short sell or agree to transfer
title through a deed in lieu of foreclosure.

Bank of America sent letters to 20,000 Florida homeowners as part of a pilot program, offering incentives of as much as $20,000 or 5 percent of the unpaid loan balance.So, it's happening elsewhere, but why not in Las Vegas?

SOME BANKS ARE OFFERING CASH INCENTIVES TO ENCOURAGE SHORT SALES

SOME BANKS ARE OFFERING CASH INCENTIVES TO ENCOURAGE SHORT SALES

Banks, accelerating efforts to move troubled mortgages off their books, are offering about $35,000 in cash to
delinquent homeowners to sell their properties for less than they owe.

Lenders have routinely blocked or delayed such transactions known as short sales in which they
accept less from a buyer than the seller's outstanding loan.

Now banks know that the deals are faster and less costly than foreclosures, which have slowed due to regulatory
probes of abusive practices. Banks are nudging potential sellers by pre-approving deals, streamlining the closing
process, foregoing their right to pursue unpaid debt and in some cases to provide large cash incentives.

Losses for lenders are about 15% lower on these short sales than on foreclosures, which can takes years to
complete, while taxes, maintenance and other costs accelerate, not to mention vandalism of homes.

The short sale deals accounted for about 33% of financially distressed transactions in November, up
from 24% last year. Karen Farley of San Marcos, California, hadn't made a mortgage payment in a
year when she got a form letter from her lender."You could sell your home, owe nothing more on
your mortgage and get $30,000," J.C. Morgan Chase said in the letter.

The New York based bank agreed to let her sell her home for $200,000 less than what she owes.

LAS VEGAS PERSPECTIVE -

Rick Piette, manager of Premier Mortgage Lending in Las Vegas, said "giving $35,000 to people may be
happening in New York which is a judicial foreclosure state, in which the foreclosure action needs to be
processed in front of a judge."

"That means with 18 months to foreclose, a short sale would be cheap considering lost payments for that
amount of time. "

LAS VEGAS - SILICON VALLEY IN THE DESERT?

LAS VEGAS - TECH PRESENCE IN THE DESERT?

Las Vegas has a long way to go before it's tech industry reaches a critical mass. It lacks the
Stanford-size intellectual push that helped Silicon Valley become the hub it is today.

But Las Vegas may be able to carve a niche itself, says Zappos executive Rick Duggan, who
mentors local tech startups in his spare time.

"Vegas is something completely different. I liken us to the Austin Texas of the world, or Boulder,
Colorado, cities that are small but who have a tech presence."

"I don't think the first thing on someone's mind when they think of Vegas is to be tech. Gaming
and Tourism are first. But if someone thinks of Gaming and Tourism and Tech that would be a
victory."

Las Vegas is fostering a home-grown tech community, but the city also has a few benefits that could draw
startups away from the San Francisco area.

"Startups are often dealing with the problem of limited funding, and the fact that Vegas is a very
low cost place to live in the West is a very big draw", said Stephan Brown, Director of the Center for
Business and Economic Research at UNLV in Las Vegas."

Zappos is also a draw. Romotive co-owner Keller Rinaudo has credited CEO Tony Hsieh's vision
for downtown with attracting his company to Las Vegas. Zappos could easily spawn offshoots like
App and software development firms or even competing online retailers.

Vegas tech is still in it's infancy. So is Rumgr (the garage sale app). The startup's next step is marketing.
They hired a public relations agency and plan to take the App nationwide.

Rumgr also last week launched a new version of it's app which allows buyers to submit a more formal
bid on items. The app is offered free on iTunes.

The company hasn't yet implemented a way to make money from the app but may do so late this year.

3 MORE STATES JOIN A NATIONWIDE SETTLEMENT OVER FORECLOSURE ABUSES

3 MORE STATES JOIN A NATIONWIDE SETTLEMENT OVER FORECLOSURE ABUSES

Arizona, Michigan and Florida, three of the states hit hardest by the housing crisis will join a nationwide
settlement, joining some 40 other states in a deal that will benefit many Americans who lost homes or can't
afford their mortgages.

The 3 states involvement buoys hopes that a full 50 state deal is imminent. 5 major states - California,
Delaware, Massachusetts, New York and Nevada are still considering whether to join the settlement.

The nationwide settlement stems from abuses that occurred after the housing bubble burst. Many firms
that process foreclosures failed to verify documents. Some employees signed papers they hadn't read or
used fake signatures to speed foreclosures.

The deal could be the biggest involving a single industry since a 1998 multi-state tobacco deal. It
would force the 5 largest mortgage lenders to reduce loans for about one million households.

The lenders will also send checks for about $2,000 to hundreds of thousands of people who lost homes
to foreclosures.

California's backing is particularly critical being the hardest hit in the foreclosure crisis. Homeowners in
states that opt out of the deal wouldn't share in the settlement money. The settlement could run as high
as $25 billion if all states approve the deal.

The lenders, Bank of America, Chase, Wells Fargo Citigroup and Ally Financial have agreed to the
settlement. In settling the charges, the states would not seek further civil action but could pursue criminal
investigations.

As of February 9, it has just been announced that a deal with 49 states has been finalized.